Forum Energy extends facility to 2018, ups accordion to $300 million

By Marisa Wong

Madison, Wis., Dec. 2 - Forum Energy Technologies, Inc. entered into a second amended and restated credit agreement on Nov. 26 with Wells Fargo Bank, NA as administrative agent to amend and restate its amended and restated credit agreement dated Oct. 4, 2011.

The amendment extends the $600 million facility's maturity date to November 2018 and increases the size of the uncommitted accordion feature to $300 million from $100 million.

The credit agreement also restates some of the financial covenants. The maximum leverage ratio is now 4.5 to 1 (previously 3.5 to 1), and the maximum senior secured leverage ratio is now 3.5 to 1 (previously 3 to 1).

Additionally, the restated credit agreement increases limits on the company's and its restricted subsidiaries' ability to incur additional debt, including the ability to incur up to an additional $150 million principal amount of unsecured debt, provided that such debt does not mature before the date that is one year after the facility matures.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are the co-lead arrangers and joint bookrunners for the restated facility. JPMorgan Chase Bank, NA and Bank of America, NA are co-syndication agents. Citibank, NA and Deutsche Bank Securities Inc. are co-documentation agents.

Forum Energy Technologies is a Houston-based manufacturer of oilfield products and related after-market technical services in the oil and natural gas industry.

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